Economics of Deforestation/Reforestation

Deforestation in the Cheranganyi Hills and Tugen Hills has altered water balances and resulted in increased soil erosion and sediment transport in the first case in the Nzoia River, and in the second case to Lakes Baringo and Bogoria. Potentially, these changes in turn will lead to large multiple reductions in ecosystem services. Additionally, local deforestation on lower elevation slopes together with added water extraction by local populations influence the water balance of critical wetlands (for example, Saiwa National Park and other conservation areas).

The research in this study focuses on the areas shown in the figure above. The goals are to:

• understand policies and factors that lead alternatively to deforestation or reforestation

• consider the economics associated with deforestation versus reforestation, and

• consider potentials for use of tree crops (avocado, mango, papaya) or adapted native species (Aloe vera) to alleviate problems tied to deforestation